Board of Regents approves UT System tuition rates

(March 14, 2005)--The UT System Board of Regents on Thursday, March 10 approved tuition and fee rates for
fall 2005 after reviewing campus proposals submitted to the UT System.

UT campuses were instructed last fall to keep tuition and fee increases at approximately 5 percent or
less, barring exceptional circumstances and need. The majority of tuition and fee increases approved by the
board, including
statutory tuition, designated tuition and mandatory fees, were at or below 5 percent for full-time resident undergraduate students.

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UT Brownsville and UT Pan American increased tuition and fees 12.8 percent and 10.3
percent, respectively. These two institutions were below the previous state maximum for designated tuition. Two
other academic institution proposals -- UT Arlington and UT Dallas -- are still under review and will be
considered by the board at a later date.

The campus tuition proposals approved by the board, along with analyses conducted by the UT System, are
posted on the UT System tuition Web site and are available for viewing or downloading. The site includes details about the process that the UT System and its campuses use to set tuition, information about financial aid and many other features.

"The board has looked closely at these tuition increases before approving them," said James R.
Huffines, chairman of the Board of Regents. "We have a lot of confidence that the UT System and its
institutions have created thoughtful, in-depth tuition programs that address higher education's broad
priorities and the needs of the public. I am very grateful to the presidents and to the campus student leaders
for their hard work and involvement in developing these proposals presented today to the regents. The broad
support for tuition proposals was evident in all of the presentations and feedback that we have seen on this
very inclusive process."

Huffines cited several key priorities that are incorporated in the tuition and fee plans approved by the
board:

Keeping a UT education affordable

Developing tuition proposals in full consultation with students, faculty and other constituencies

Making sure that all students with financial needs receive appropriate aid

Meeting the needs of a diverse and rapidly growing student population and assisting the state in
achieving its goals for increased college enrollment and timely graduation rates

Operating a tuition system that passes the most demanding tests of accountability and transparency

Using creative incentives to help students save money and help institutions achieve their
strategic goals.

"It's vital to the UT System that students won't lose the opportunity for a good education because of
financial need," said Huffines. "At the same time, we have to ensure we're offering all our students the
highest possible caliber of education."

In making his recommendations to the board, Chancellor Mark G. Yudof said, "We have worked diligently
to keep tuition increases at a minimum consistent with maintaining high educational standards and current
services for our students. The process has been difficult because our campuses have been dealing for years
with rapid student enrollment growth without a corresponding increase in funding from state government. As a
consequence, even though state funding has been relatively stable, the amount of state funding per full-time
student has actually decreased substantially -- by an average of almost 14 percent since the 2002
biennium. There is a limit to how much more we can do with this much less."

"We are working with the state's leadership and the Legislature to find solutions for the continuing
challenge of developing adequate resources to pay for growth," Yudof said. "This issue is of profound
importance since higher education in Texas is expected to absorb 600,000 new students by 2015 to achieve
the state's objectives in Closing the Gaps in college attendance and graduation."

The regents approved plans that include setting aside at least 20 percent of new tuition revenues for
financial aid programs, as well as a variety of ways that students can take advantage of special discounts
in tuition rates. Institutions are committed to providing additional funds to meet students' needs.

UT campuses will use the additional tuition revenues to enhance academic programs and student services, such
as hiring additional faculty and advisers, reducing class sizes and making repairs and renovations to campus
buildings.

The plans approved also include a variety of incentives to encourage students to graduate on time by
taking more semester credit hours per semester.

Increasing the graduation rate -- by using such incentives as flat rate tuition -- and shortening the time
that students take to earn a degree will serve several purposes. It will allow institutions to admit more
new students with current facilities and resources because older students will be leaving on time. It will also
save students and their families significant amounts of money by cutting total student living expenses and
speeding up the entry of graduates into the professional labor market.

The UT System has 15 campuses, including nine academic and six health institutions, and an annual operating
budget of $8.5 billion (FY 2005). Student enrollment exceeded 182,000 in the 2004 academic year. The UT
System confers one-third of the state's undergraduate degrees and educates three-fourths of the state's health
care professionals annually. With more than 76,000 employees, the UT System is one of the largest employers
in Texas.

For more information, contact Anthony de Bruyn or Cile Spelce at (512) 499-4363.